Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. What is the future value of $35 a week for 40 years at 8.5 percent interest? Assume the first payment occurs at the end

1. What is the future value of $35 a week for 40 years at 8.5 percent interest? Assume the first payment occurs at the end of this week and there are 52 weeks in a year. A) $638,855.00 B) $675,983.00 C) $629,789.00 D) $642,873.00 E) $618,394.00

2. Amanda plans to invest $2,500 a year for 30 years starting at the end of this year. How much will this investment be worth at the end of the 30 years if she earns an average annual rate of return of 6.9 percent? A) $230,743.00 B) $233,962.00 C) $231,945.00 D) $233,910.00 E) $222,705.00

3. Uphill Insurance offers an annuity due with semiannual payments for 50 years at 3 percent interest. The annuity costs $200,000 today. What is the amount of each annuity payment? A) $3,388.00 B) $3,497.00 C) $3,874.00 D) $3,850.00 E) $3,199.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Authors: Jeff Madura

12th edition

9781337515535, 1337099740, 1337515531, 978-1337099745

More Books

Students also viewed these Finance questions